HONG KONG AP Most Asian stock markets were sharply lower Tuesday following Wall Street's decline with Hong Kong prices diving for the third straight day. Hong Kong's blue chip Hang Seng Index plummeted 4.1 percent as the market digested a host of negative economic data as well as Monday's 2.3 percent fall by the Dow Jones industrial average in New York. The Hang Seng closed below the psychologically important level of 10000 points to end at 9975.85 down 426.47 points. Traders are worried about Hong Kong's economy which is struggling through recession said Michael Ng dealing director at Sassoon Securities. Hong Kong's gross domestic product fell by 7 percent in the third quarter prompting the government to lower its economic forecast a 5 percent contraction for 1998. Since that gloomy news was announced Friday the market has shed 7.1 percent. Late Monday the government reported its budget deficit for the first seven months of the fiscal year had reached 50.16 billion Hong Kong dollar U.S. dlrs 6.43 billion well above the 21 billion Hong Kong dollar dlrs 2.69 billion deficit the government estimated for the fiscal year that ends March 31. Market participants also said the Hang Seng index's plunge was a natural correction as investors cashed in after sharp gains over the past two months. In Tokyo the Nikkei average of 225 selected issues fell 48.29 points or 0.3 percent to 14835.41 after a 185.69-point fall Monday. Traders said the market reacted mildly to Wall Street's drop and news that JDC a financially troubled contractor had filed for legal protection from creditors. ``Despite JDC's failure and the overnight drop in New York the market showed some resilience'' said Sachio Ishikawa general manager of the stock division at Chuo Securities. Singapore share prices were sharply lower before the close with the benchmark Straits Times Index down 43.82 points or 3.1 percent at 1372.73. Other Asian markets were also lower. APW19981201.0343.txt.body.html APW19981201.1033.txt.body.html